Market-based methods of spectrum management in the UK and the European Union

Market-based methods of spectrum management can be applied both at the primary stage of issuing spectrum licences, via auctions, and by introducing a regime of secondary trading of spectrum licences, thereby permitting both change in ownership of the licence and a choice on the part of the licensee over what technology to employ (technological neutrality) and what to produce (service neutrality). Moreover, the use of market methods need not be confined to spectrum used for commercial purposes. Government and public sector bodies can participate in spectrum markets, just as they do in other input markets. Both the European Union and individual member states are increasingly interested in applying market methods of spectrum management. The European Commission has put forward legislative proposals, which, if adopted, would create bands that were subject to trading and flexibility of use over the 27 member states. In one member state, the United Kingdom, a new regime of spectrum management has been designed and is being implemented involving predominant reliance on spectrum markets, an extensive programme of spectrum awards, the development of a new method of specifying spectrum user rights to permit change of use and the integration of commercial and public sector spectrum markets. The effects of these innovations are not yet clear.